Advice 25 April 2020 at 1:07AM in Bankruptcy & living with it 8 replies 321 views

Ronii10

Can anyone pls help/suggest:
My husband was declared bankrupt in 2010 due to a single unsettled debt. Following, a trustee was appointed. In 2011 my husband was discharged from the bankruptcy. We both had jointly owned properties. The trustee has taken possession of all the properties and recovered the funds. We have lost everything (my share too) we had worked for during our lives, our livelihood and home. There were large amounts of equity in the properties. We do not know how the funds have been spent.
The business was a Limited Company however, we personally have had to cover all the costs and expenses of the bankruptcy?  
The trustee sold our home after seven years into the bankruptcy when a trustee only has three years to sell the family home?
We are 68 and 63 years of age and are now in rented accommodation.

mwarby

It sounds like perhaps there was both a personal bankruptcy and a company liquidation. If the banks for the company had personal guarantees, or charges against the family home its possible these could be enforced after the three year point. Also was the trustee for bankruptcy also acting as the company liquidator.

Have you asked the trustees about the costs and what they managed to get for the properties ?

luvchocolate

I had a full financial statement from my trustee when they completed my affairs 

Ronii10

We are aware of what the trustee has received for the properties but not if the debt has been settled. There was enough equity in the properties to have easily paid the debt from just one property without selling our business and family home. They have not provided us with a financial statement.
There has been only one trustee in this bankruptcy process. 

Scotland2021

Bankruptcy costs are very significant - as the majority of people pay nowhere near the actual cost (Court fees are a fraction of the cost) and have no/little assets.... it means those that do actually have assets have to provide the income (they get some from the Government, but have to try and make a bit where there are asset realisations sadly).

Does sound very bad, but if properties were sold at auction for example, that was potentially only 50% of what they were worth. OR/Trustee claims 15% IIRC.

Unless the 1 x property was valued at something silly like £1m, I don't think there's ever a case for the fees easily being paid unfortunately. Sounds harsh, but just to set your expectations. I'd request a breakdown from the Trustee (although that might actually aggravate you more, so it could be worth just letting it go, sadly).

Minkym00

The IP will have written a final report which will break everything down. You can ask them for it but you can also ask the Insolvency Service for it as they will have a copy. If you feel the charges are excessive you can try and challenge them. 

Ronii10

The IP has dragged out the bankruptcy process which has continued from year 2010 - 2018. Furthermore, according to the records there is still money outstanding when everything we both had has already been taken by the IP.The Insolvency Service are saying they do not have the records of this case because it has been over six years.
Nothing was ever explained to my husband, he was the bankrupt. I was not bankrupt. The IP issued joint court proceedings in my husband's and my name for the sale of all our properties. We believe we have been innocently trapped. Why would anyone with a portfolio of properties become bankrupt anyway?
The IP was also wrong with his assumption of the status of creditors i.e.secured and unsecured. There was only one unsecured creditor in the bankruptcy however, the IP claimed and also disputed the fact that there was another unsecured creditor. Later the IP was found to be wrong. However, nothing became of the IP'S grave mistake and how it had impacted the entire process of the bankruptcy i.e. charges, time limits.
We have found the IP has not been transparent with the charges. We are not aware on what basis this bankruptcy has been administered i.e. what guidelines and regulations have been followed. All we have seen is the IP free to do anything, whenever he wants. Whether this is Personal Bankruptcy or Company Liquidation. 
The IP has complicated something that should have been straightforward.

mwarby

It does sound like the only person that can help is the trustee

as I mentioned before this does seem to be a complex case. While many of us gave some (often self taught) knowledge of personal insolvency how that relates to corporate insolvency is perhaps less well understood 

historically bankruptcy and trustee fees have been very high. This is due to the fact that many bankruptcies raise nothing (many with assets of value or decent income end up with different debt solution) and the insolvency service is funded by these fees, not by the government directly 

mwarby

If you look at http://www.legislation.gov.uk/uksi/2004/593/schedule/2/made

you’ll see that there’s a 17% fee on all realisations (money raised by either an IPA/IPO or selling assets), a £1600 fee. In your case I suspect you gave 2 lots of these as you gave a personal and corporate insolvency

I'm not sure but I suspect this is before the trustees costs, which will everything from estate agent fees, conveyancing fees, insurances down to postage costs